Daily Current Affairs Quiz4 March, 2025 International Affairs 1. India-Australia Economic Cooperation Context: Australia expressed continuing faith in the economic ascent of India, backing its aim to become the third largest global economy by 2030, and supporting India’s permanent membership in the United Nations Security Council. Recently, Prime Minister Anthony Albanese of Australia announced the New Roadmap for Australia Economic Engagement with India to expand cooperation in various sectors ranging from trade to investment to geostrategic partnership. Trade Surge between India and Australia Focus Areas under the Roadmap The roadmap identified four “Superhighways of Growth”: The other visible path of prosperity will come alive through the seven ‘Major Economic Roads’ including investments, technology, sports, arts & culture, resources, defence, space, and health. Harnessing the Indian Diaspora People to people ties are at an all time high with the 1 million strong Indian diaspora, the fastest growing population group in Australia.Australia is investing ₹132 crore in the Centre for Australia India Relations and ₹22 crore in the Maitri grants program to further strengthen this ‘human bridge’ between the two nations. Going Forward: CECA Implications The New Roadmap indicates Australia’s long term commitment to enhancing India’s economic strength, putting forth a clear, structured approach to an intensified partnership. 2. The White House Clash Context: A day after the heated exchange at the Oval Office between President Donald Trump, Vice President J.D. Vance, and Ukrainian President Volodymyr Zelenskyy, protests for Ukraine erupted across numerous cities in the U.S. Meanwhile, a survey by the PEW Research Center highlights an increasing partisan divide regarding U.S. aid to Ukraine and NATO issues. Moulding Attitudes on U.S. Support for Ukraine Party Split (Chart 1 and 2) Concerns Based on National Security NATO Membership of the U.S.: Eroding Faith Decreasing Support for Additional European Defense Spending A deepening partisan divide over aid to Ukraine, NATO and national security means that greater challenges could loom for U.S. foreign policy in the future. With the Trump administration signaling a shift in priorities, the role of the U.S. in general security alliances continues to remain controversial. Source: TH 3. India-Belgium Defence Ties Context: India and Belgium deliberated upon defence engagements in Indo Pacific with a view to the maritime domain and, by extension, industrial cooperation. Defence Minister Rajnath Singh met Belgian Defence Minister Theo Francken and Princess Astrid in New Delhi to discuss boosting Belgium’s defence investments in India.An “institutionalised defence cooperation mechanism” is likely in further discussions between the two sides. India-EU Defence Collaboration Strategic Importance This promising India Belgium and India EU partnership will open a new chapter in global defence cooperation for security in the Indo Pacific but beyond. Source: TH National Affairs 1. The Sacred Orans Context: In pursuance of the judgment of the Supreme Court of India, all sacred forests in Rajasthan known as orans were, from December 2024, protected under a High Court order recognising the socio-ecological and cultural significance of orans in T. N. Godavarman Thirumulpad v. Union of India. The ruling brought orans under the purview of the biodiversity-related laws, but the issue remains whether formalisation undermines community governance. The meaning of Orans Yet, despite the concern for mere empowerment of communities that the Court expressed, the whole idea of formalisation, as presented, makes one apprehensive: Declare Orans as Forests under the Forest (Conservation) Act, 1980 Declare Orans as Community Reserves under the Wildlife (Protection) Act, 1972. Orans may become ‘Common Forest Land’ under the Forest Rights Act, 2006. Strengthening Community Led Governance While the Supreme Court’s ruling acknowledged the cultural and ecological significance of orans, the formalization could disturb traditional governance systems. 2. Cities Coalition for Circularity (C-3) Context: India launched the Cities Coalition for Circularity C-3, a multi national platform for city to city collaboration, knowledge sharing, and partnership with the private sector in support of sustainable urban development. Key Objectives of C-3 Prime Minister’s Vision To further strengthen the coalition, he proposed the formation of a working group to develop the structure and operational framework for the coalition. Key Signing of the CITIIS 2.0 Agreement A key Memorandum of Understanding (MoU) for CITIIS 2.0 was signed at the time of the launch in the city of Jaipur. C-3 will play a very crucial role in making Indian cities sustainable and resource efficient, said Manohar Lal, Union Minister of Housing and Urban Affairs. 3R and Circular Economy Forum Previous Development A Milestone: The Hanoi 3R Declaration (2013-2023) The launch of C 3 marks a significant step in India’s commitment to sustainability. Through this initiative, India aims to lead global efforts in circular economy practices, ensuring a greener, more resilient urban future. Source: TH 3. Gangetic Dolphins First Survey Context: A very large survey has brought out the figure of 6,327 Gangetic dolphins inhabiting the waters of the Ganga and its tributaries, it is the very first standardized assessment of their population. At present, because of varied previous counting methodologies, this number cannot yet indicate trends in population over time. Distribution of Dolphin Population This survey is the first step undertaken in scientific conservation efforts, covering a huge expanse of river stretches that totals 8,507 km. Difficulties in Counting the Dolphins New Survey Methodology Threats of Gangetic Dolphins Roadmap for Conservation in the Future State Wise Dolphin Population With standardized survey methods, simple and focused conservation strategies, India is gearing up for a major leap in the direction of ensuring a favorable future for the Gangetic dolphin, one of the most relevant indicators of river ecosystem health. Source: TH 4. Aditya-L1 Mission Update Context: The Indian Space and Research Association has announced the second set of scientific data released by ISRO‘s solar observation mission Aditya L1, providing crucial information regarding the Sun’s photosphere, chromosphere, and corona, as well as in situ particle and magnetic field measurements at the first Earth Sun Lagrange Point (L1). The Scientific Journey of Aditya L1 The mission serves as a treasure trove of data for solar parameter studies and helps augment the understanding of solar activity,
MGNREGA Work Demand Remains High
Context: As of February 2025, MGNREGA has a total of 21.8 million households seeking work, which is a minor increase of 3% from February of the previous year. There has been a sustained demand growth for the work that is always higher than the previous year towards the end of November 2024.Funding Shortfall: MGNREGA has a net negative balance amount of ₹18681.24 crore as of the 3rd of March, 2025. Financial Scenario Work Demand Trend More likely further fund allocation might be needed to cater demands on rise.Delayed payments could have repercussions on rural livelihoods as well as project completion.Sustained increase in demand may signal wider economy or employment issues in rural India.
Single nodal agency (SNA) system
Context: The SNA system aims at not only improving the transparency of centrally sponsored schemes (CSS), but also improving their efficiency. The current system reserves funds in several accounts to ensure “Just in Time” release. So far, it has helped the Union government save ₹11,000 crores. Why Use of Fund Must Be Made Efficient? Issues & The Way Forward The SNA system is bound to improve governance and fiscal governance through resource trade-off in the country. Source: BS
Recommendations by RBI for MSME Lending
Context: The Deputy Governor Swaminathan J mostly appealed for greater empathy from the banks toward MSEs who face financial deprivation. Digital solutions, alternative credit models, and wider acceptance of TReDS should be considered in order to improve MSME finances.Delayed payments, information scarcity, and financial illiteracy were brought forward as the major issues.The 29th meeting of the Standing Advisory Committee (SAC) took place in Ahmedabad concerning the review of MSME credit flow. Recommendations by RBI for MSME Lending Hence, their take on ABI is that with MSMEs being the backbone of the Indian economy, the RBI advocacy for such innovative and inclusive banking solutions leads to fina
India to Overtake Japan as the Fourth Largest Economy
Key Highlights: India’s GDP Growth vs. Other Major Economies Country 2017 2018 2019 2020 2021 2022 2023 2024* India 6.8 6.5 3.9 -5.8 9.7 7.6 9.2 6.5* US 2.4 3.0 2.6 -2.2 6.0 2.5 2.9 2.8 China 6.9 6.7 5.9 2.2 8.4 2.9 5.2 5.0 Japan 1.7 0.6 -0.4 -4.2 2.7 1.1 1.5 0.1 India’s figures are based on financial years (April-March). India’s Economic Expansion in Dollar Terms Year GDP ($ Trillion) 2017-18 2.65 2018-19 2.70 2019-20 2.84 2020-21 2.67 2021-22 3.17 2022-23 3.35 2023-24 3.64 2024-25 3.91 Revised estimates and exchange rate fluctuations have been accounted for in this projection. Major Issues With steady growth along with favorable conditions in the world, India is going to overtake Japan, which will become the fourth largest economy by 2025. Only the US, China, and Germany will then be ahead of it. Source: BS
Manufacturing PMI
Context: The Manufacturing PMI in India has fallen to a 56.3 in February from a earlier figure of 57.7 in January.Such a figure is currently below 14 month but still well above contractionary territory. The Purchasing Managers’ Index (PMI) is the barometer for an economy’s manufacturing activity a reading above 50 implies expansion, the below value indicates contraction. Main Features Demand and inflation trends Chief India Economist, HSBC Purchasing Managers’ Index (PMI) The Purchasing Managers’ Index (PMI) is a leading economic indicator that controls business activity over the manufacturing and services spectrums. Monthly based surveys of companies on economic trends and market conditions provide a base for it. Types of PMI How is the Manufacturing PMI Derived? PMI is calculated from the survey responses provided by manufacturing companies based on five key variables: PMI values are interpreted as follows: Global PMI Measurement The Purchasing Managers’ Index (PMI) was first published in 1948 by the Institute for Supply Management (ISM), USA. The Singapore Institute of Purchasing and Materials Management (SIPMM) compiles PMI for Singapore. IHS Markit is known to be producing PMI for 30 countries, with India being one of them. The Manufacturing PMI in India dates back to survey responses from 500 manufacturing companies. Why is PMI Important? Even though some momentum waned within India’s manufacturing sector, it is still in expansion mode, with booming job creation and resilient demand. Looking ahead, however, some inflationary pressures and uncertainties in the global context would dent this momentum in future growth. Source: BS
Purchasing Managers’ Index (PMI)
The Purchasing Managers’ Index (PMI) is a leading economic indicator that controls business activity over the manufacturing and services spectrums. Monthly based surveys of companies on economic trends and market conditions provide a base for it. Types of PMI How is the Manufacturing PMI Derived? PMI is calculated from the survey responses provided by manufacturing companies based on five key variables: PMI values are interpreted as follows: Global PMI Measurement The Purchasing Managers’ Index (PMI) was first published in 1948 by the Institute for Supply Management (ISM), USA. The Singapore Institute of Purchasing and Materials Management (SIPMM) compiles PMI for Singapore. IHS Markit is known to be producing PMI for 30 countries, with India being one of them. The Manufacturing PMI in India dates back to survey responses from 500 manufacturing companies. Why is PMI Important?
India’s GDP growth rate for Q3FY25 at 6.2%
Context: India’s real GDP grew by 6.2% in Q3FY25, which is improved against the revised 5.6% in Q2FY25, but still among one of the slowest growth rates since Q4FY23. The poor performance of manufacturing activities and the services sector amid uncertainties surrounding global trade is rendering the government’s 6.5% full year growth target increasingly difficult to attain. Key Highlights While strong government spending and improved consumption provide some respite, there are severe challenges from global trade pressures, slow industrial growth, and worries concerning data credibility. Therefore, the 6.5% full year growth target will require a show of greater strength against external economic shocks and engagement of domestic demand.
Slow IPO Market
Context: Just 14 companies filed Draft Red Herring Prospectus (DRHP) forms in February as opposed to 29 in January, the lowest ever to show since November 2024.Decline in Fundraising: The overall amount being sought for IPOs dipped to ₹9,695 crore, which is a low of 9 months. What is Slow IPO Market? The condition called the Slow IPO Market is attributed to the low DRHP applications, which observed a new low of 3 months. What is Initial Public Offerings? What is Behind the Slowdown? Wider Market Effect Source: BS
Virtual Digital Assets (VDAs)
With the evolution of blockchain technology and expansion of digital economies, countries all over the world have begun amending their regulations in view of ensuring that Virtual Digital Assets (VDAs) are properly governed. India’s Income Tax Bill, 2025, sets forth a clear legal structure for VDAs under Section 2(111), and the country’s tax policies thus have corresponded to global standards. What are Virtual Digital Assets (VDAs)? VDAs as Property and Capital Assets This means that any gains resulting from the transactions involving the VDAs will be taxed in a manner analogous to property deals or transactions involving stocks and bonds. Tax Features Global Comparison Country Legal Status of VDAs Tax Treatment U.K. Property Subject to Capital Gains Tax (CGT) U.S. Securities Regulated under SEC financial market laws New Zealand Property Subject to income tax on trades UAE Regulated by VARA 0% personal income tax on certain gains Compliance and Reporting Requirements Heightened Regulation over Crypto Transactions Challenges and Road Ahead India’s taxation approach, therefore, goes so far as to reaffirm that VDAs are a non shadow asset class. For a robust, safe digital economy, the demand for stronger financial regulation, consumer protection, and standardized compliance guidelines has become urgent. Source: TH
